FMC merger with SEBI

FMC merger with SEBI:-
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Forward Markets Commission will merge with the younger but much bigger capital markets watchdog SEBI to create a unified regulatory body.

The merger of FMC and SEBI was first officially mooted over 12 years ago when the commodities market was just opening up. The final trigger was the Rs 5,600 crore payment fraud at the National Spot Exchange Ltd (NSEL).
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SEBI:-

The Securities and Exchange Board of India (SEBI) was set up in 1988 as a non-statutory body for regulating the securities markets, while it became an autonomous body in 1992 with fully independent powers.

FMC:-

FMC, on the other hand, has been regulating commodities markets since 1953, but lack of powers has led to wild fluctuations and alleged irregularities remaining untamed in this market segment.

Benefits of MERGER ??

FMC's merger with SEBI is aimed at streamlining the regulations and curb wild speculations in commodities market, while facilitating further growth of the market. Forward Contracts Regulation Act (FCRA) 1952 will get repealed and Regulation of Commodity Derivatives Market will shift to Securities and Exchange Board of India (SEBI) under Securities Contracts Regulation Act (SCRA) 1956.
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While foreign institutional investors are allowed to invest in Indian equities and debt markets, they are currently restricted from participating in commodities trading at exchanges. SEBI may allow FII participation in commodities trading going forward, which would provide more depth to the markets, and increase liquidity, investor participation and better price discovery (Price discovery has been a major issue in commodities trading).
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As of now the commodities sector is largely unregulated as FMC has been a weak regulator. Now with the merger, SEBI which is a larger organization with a solid experience in regulating securities, commodities will easily be better regulated.

The Financial Sector Legislative Reforms Commission (FSLRC) had recommended that SEBI, IRDA, PFRDA and FMC should be merged into a single entity into a unified financial agency (UFA).